Meet the Capital One Savor card: a 3% cash back dining rewards credit card with no annual fee that considers coffee shops and nightclubs as dining charges. Cardholders also score a $150 bonus if they spend $500 within 3 months of signing up, along with 2% cash back at the supermarket, 1% cash back on everything else – and they charge no interest for the first 15 months.
Who this card is best for: If you spend a lot more money dining and drinking out than you do at the grocery store, and if you won’t need to use your rewards for airlines.
Who should consider other cards: If you want to redeem your rewards for travel or if you spend more money at supermarkets than you do eating and drinking out – or if you’d prefer earning rewards at the gas pump.
Here are the basics:
- 3% cash back on dining with a lot of flexibility in types of vendors (fast food, bars, coffee, etc.)
- Zero annual fee
- $150 sign-up bonus if you spend $150 within the first 3 months of opening the account
- 0% APR for first 15 months (including balance transfers)
- Rewards don’t expire
- Contactless payment
- No foreign transaction fee
- High interest rate after introductory period (16.24%-24.99% Variable APR)
- Just 2% cash back on groceries
- Just 1% cash back on all other purchases
- Can’t be redeemed for merchandise or airline travel – just check, statement credit, gift cards and charitable donations.
Now, in more detail, let’s dig into the Capital One Savor card.
Easy-to-earn dining rewards
Savor considers many types of transactions to be counted within the “dining” category: from 5-star restaurants to a drink at the pub. These all get 3% cash back. This card also doesn’t impose any minimum redemption requirements or restrict your rewards after you spend a specific amount.
Cash back rewards are limitless, and they can be redeemed for any amount at any time in the form of a statement credit, check, gift card or charitable donation. There’s also convenient automatic redemption options, like annually (or when you hit a specific threshold, like $50, for example).
One downside is that supermarket purchases only get you 2% cash back, and everything else is just 1% – other cards out there do much better in those categories, from 4%-6% (but won’t typically come with 0% introductory APR or 3% cash back on as many dining options as the Savor card).
A second downside is that Savor rewards can’t be redeemed for merchandise or airline travel.
An simple sign-up bonus
Compared to a lot of airline miles rewards cards, it’s very easy to get your (somewhat small) $150 bonus – all you need to do is spend at least $500 in three months. That’s easy, as it’s only $166.67 per month, and it also gets automatically credited to your statement once you reach that minimum.
With travel rewards cards that ask their cardholders to rack up $1,000 to $3,000 in charges before getting your miles bonus, the Savor card has a very easy-to-achieve threshold by comparison.
Low introductory APR – followed by a high regular APR after 15 months
This applies to all purchases and balance transfers, but the variable APR after the first 15 months (16.24%-24.99%) is on the higher end of the spectrum.
Contactless “tap” payments are enabled, no transaction fee, and rewards don’t expire.
This card also comes with car rental insurance, roadside assistance, ID theft services, emergency card services, complimentary concierge service, price protection and an extended warranty.
But wait a minute – even if you eat out or order food in frequently, there may be better options that fit your lifestyle a little bit better (and stretch your rewards further). Check out the other options below and see which one would be the most suitable for you, personally.
You also might consider:
If you shop at Costco a lot:
Consider the Citi Costco Anywhere Visa Card
This card, which requires an annual Costco membership (about $60 per year), also allows its users to get 3% cash back on dining – but coffee shops and bakeries aren’t included. The $60 per year membership cost can basically be considered as an annual fee, but at least you get the privilege of being able to shop in bulk at Costco locations. This card has no introductory APR but gets you 4% cash back on eligible gas for the first $7,000 per year – then 1% after that. By the way, the Savor card is a Mastercard, which isn’t accepted at Costco (something to think about).
If you do more supermarket shopping than dining out:
Consider the American Express Blue Cash Preferred Card
With this credit card, you get a whopping 6% cash back from supermarkets in the United States, so if you are a big at-home food preparer this would be the best option for you. That only lasts for the first $6,000 in purchases for the year, then it dips down to just 1%. It also offers 3% cash back at US gas stations and certain US department stores with 1% cash back on other purchases. Cash back is given as a statement credit in increments of $25, as you hit those thresholds.
The regular purchase APR is similar (14.74%-25.74%), but the bonus offer isn’t quite as good: a $200 statement credit after you spend $1,000 in the first three months. There’s also a $95 annual fee.
If you use Uber apps often:
Check out the Uber Visa Card
This rewards card, which also has no annual fee, gets you 4% cash back on dining, 3% cash back on hotel and airfare, 2% on online purchases and 1% back on everything else. The Uber card’s cash back offer is $100 cash back (or 10,000 bonus points) after you spend $500 in 90 days (slightly worse than the Savor card’s program).
But, with the Uber card, you can nab a $50 credit if you spend at least $5,000 per year. There is, however, a $500 per day limit of spending that can get you points. Oh, and there’s no interest-free balance transfer period.